Here is a good set up for beginning and maintaining a stop log for doing C&R's for trailing stops during trends of any pace. I'm going to do it in a step by step way using today as an example starting where you suggested above. 1. Make a log of the sequence of potential stops as they appear as significant points in formations. 2. Go to the one minute chart for this because the tape that is running is on the five minute trading fractal. 3. Set the scale to two point intervals, i. e., 878.0, 876.0, 874.0, etc... 4. Enter first the peak, 878.1, and use this as point 1 for the channel that is setting up. 5. Enter subsequent points as they occur: 877.0, 877.2, 875.2, 876.2, 877.0. 6. What I do is actually leave spaces so that I can put the entries in order following the trend. What you get is: 878.1, 877.2, 877.0, 877.0, 876.2, 875.2. Naturally if you have 877.0, you only put it in once. Sometimes, a retrace occurs and I just erase the points that no longer apply. Notice that all the entries are in four significant figures where the least significant is to the right of the decimal point and the numbers 0,1,2,3, just stand for the 1/4 trading values as the number of quarters. 7. Circle the entry that is a current potential stop that you will use when the time comes. 8. Determine how many peaks are occuring every 15 minutes. There are two or three. Use two peaks as your C&R time periodicity (ten minutes for today). Carry this value forward as long as the market is the same. 9. Circle four entries back from your last entry at all times. If the pace quickens, then circle three back. If the pace slows, circle five back. In this way you calibrate the offset of potential stops in current time and pace of market. 10. As the trend ends you will see that you no longer can add values to the stop log. You continue, however, to C&R this is like a pincer movement where the market trend is moving towards you and your stop C&R's are moving to the market. When you notice that you can no longer add values it is time to exit prior to the time that the pincer would close. You make more money this way. When you get to an intermediate or advanced state, you will consider reversing at this time in order to be on the right tack when the price BOs of the existing channel. You will also notice that the last entry you make ususally becomes point 1 of the next channel. This is how a lot of stuff turns into KISS. As you can see, this all worked out fine. The trend slowed and a slow trend commenced where the tape is on the 15 minute fractal. You can see that an exit on the fifteen minute was about 866.0. The subsequent congestion, convergence and centering occured up to a point where several VDUs occured. This set you up for a bracket entry where the centering value is the same as your exit (866.0). It doesn't matter which way the market continues, you use the sequence of break out volume, MACD BO off neutral and the STOC BO off 50%. You can tell when the centering begins because the periodicity ends and only volitility setments (small and large) sequence along. Today, the BO for your bracket was short. You set up 866.3, 863.5 and 864.3 as respective points 123. Your new point 3 becomes 865.1 and you are on your way with your stop log. thank Liz for typing the notes.
As you move from just trading rockets on the 5 min to toher stuff, there are tradeoffs. The sequence is this: Trade rockets only. Practice wash trades for facility during midday. Add points 1,2,3 so you see trend from beginning to end. Go to a stop log set up when you begin to extend the rocket and or if you begin to iceberg as a way of extending rockets. Do bracket trades on centering. (usually PM start up) At this point you ought to be in a place to understand some or all of the list. I recommend that you make changes in your scope of approach as you make progress in accumulating capital. When you get to thinking about multiple contracts, then are in a place of confidence where that will work for you. A very bad mistake to make is paper trading first and then assuming you know a lot so you can just plunge in. You cannot learn the emotional threequarters of trading using paper trading. You will see that people here in ET do a lot of retreating and freezing up. That is related to what they do not know that they don't know. Rocket trading only then adding wash trades is the most efficient way to learn what you do not know. when people retreat here and they state the context, you see that they go back to what works for them and drop what is interferring that they more recently added to their quiver of arrows. All the first level stuff is more a prevention of mistakes program that a money making program. Every time you eliminate making a specific kind of mistake, then you get a better income stream. By starting the stop logging, you open up a problem. You are on the 1 min fractal and everything appears to be larger than it is. We only go there to get a sufficient number of log enteries to maintain a nice effective trailing stop offset. So do not hang out there all the time. just do listing in spurts and stay on the tape fractal primarily. separating the listing of stops from the time of C&R is a giant step for killing emotions in making money. You do logging as monitoring and you do C&R's as reporting actions. by separating monitoring and reporting, you cut out emotions. Logs are in concrete. Reporting to C&R is just checking in punctually. Seeing the logging stall out is a slow motion non emotional event.
1. with the large gap the stoch opened well into the short zone, i noted the low of the first 15 minutes and got short on the break. short @ 873.25 10:01 cover @ 868.25 10:52 +5.00 day: +5.00 last 5 days: +18.00 10:45 had a low volume inside green bar(which has been vodoo lately) and when the down trendline was broken. i exited. (see chart) i also attahced my 1m chart with the channel for the down move. we then had a trend channel for the middle part of the day...did two wash trades...nothing notable other than recognizing the channel. (big whup) 2. 2:45 s(100, 89.86) macd hist +.59 high 866.50 long on the break at 866.75...stoch did leave buy zone, but stayed within my defined trend channel (see chart). Then at 3:15 low volume inside red bar (another vodoo bar) exited on macd xo and break of my trend line at 865.25. long @ 866.75 sell @ 865.25 -1.50 day: +3.50 last 5 days: +16.50 3. with the rocket failure of the previous trade i reversed my position on my exit and took a short position with macd xo after a rocket failure. trade turns into a short rocket at 3:35 s(0.00, 21.52). But 3:45 we get a good volume bullish engulfing bar. When the high of this bar is broken i eixted at 865.50 for a small loss. short @ 865.25 cover @ 865.50 -0.25 day: +3.25 last 5 days: +16.25 in general, not much of a day after the morning move...midday brought a good channel (not my area of success thus far) and late day was fairly whippy with a few small losses. 4th positive day in a row, so happy with that.
Jack, I'm feelin' kinda stupid, but I am lost with your "stop log" post. Would it be possible for you (or anyone who understands) to post a chart? A very confused camper...
this is what I think of 'stop log' write down value of each spike/hitch/peak (red lines) if value repeat (tweezers) then you don't need to write it twice, if some spike more than the other (exp. yellow line) replace the value of red line with value of yellow line), count number of values starting from where you enter, count backward, if market slow, your stop loss will be the fifth value, if market go fast use the third value for stop loss...and I guess the next question is what/when is fast/slow market
See attached file. Make the total list be: 878.1 877.0 877.2 875.2 876.2 877.0 874.3 874.0 876.1 You can erase or X out the retraces. You get: 878.1 877.0 xxx 877.2 875.2 xxx 876.2 xxx 877.0 874.3 xxx 874.0 xxx 876.1 The retraces "cover up" trades and leave the sticky places for people who are there participating. These are decision values like support and resistance very short (intraday) term. Now for pace we look at peaks in the 15 min period. There are 5 in two periods. So roughly that is 2 per 15 min. THe 15 min is a convenient interval for glancing. The more peaks the faster the pace of action (repetition of micro cycles). What you want to know is if it is fast, medium or slow and if it changes. The log keeps you alert and sort of busy as a non emotional monitor. Put a circle in 4 entries back for this pace. Do not count xouts. 878.1 circled 878.1 877.0 xxx 877.2 3. 875.2 xxx 876.2 xxx 877.0 2. 874.3 xxx 874.0 xxx 876.1 1. You can see the xouts affect the circling. That is life. You can see that you need an off set at your entry if there is not a "4 back entry". As you see the offset from 1. to circle (4) for today as 2 points, you will , as days go by get calibrated. So you can use that arbitratrily. notice that you keep collecting portential stops , making xouts and moving circled value. When C&R time (two peaks period (10 minutes about)) comes up, then you look at circled value and use it. You have periodic C&R and you collect data. The two get unlinked emotionally. You monitor and you report. As you get in the groove, you see connections and relations. The values the market gives you. The market gives you spacing of peaks. You will not get stopped out anymore. The time between no new stops and the trend end is long enough to take exit and /or reversal action. So you make more profits than being stopped out.